A company has the following capital structure to support its $600,000 in Total Assets. What percentage of the capital is...
A company has the following capital structure to support its $600,000 in Total Assets. What percentage of the capital is Common Equity?
| $ | |
| Debt | 300,000 |
| Common Stock | 100,000 |
| Retained Earnings | 200,000 |
Homework Answers
Equity = Common stock + retained earnings
Equity = 100,000 + 200,000 = 300,000
Percentage of common equity = (Common stock / total capital structure) * 100
Percentage of common equity = (300,000 / 600,000 ) * 100
Percentage of common equity = 50%
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14
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equity
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14
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Total liabilities & owners'
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$
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